Heritage Financial Corp /WA/ Files 10-Q for Q2 2024

TL;DR

HFWA 10-Q filed for Q2 2024. Financials and operations detailed.

AI Summary

Heritage Financial Corp /WA/ reported its 10-Q filing for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter of 2024. Specific financial figures and operational highlights are provided within the document.

Why It Matters

This filing provides investors and analysts with the latest financial health and performance indicators for Heritage Financial Corp, crucial for understanding its current market position and future prospects.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags or significant negative events indicated in the provided snippet.

Key Players & Entities

• HERITAGE FINANCIAL CORP /WA/ (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240809 (date) — Filing date

FAQ

Filing Documents

• hfwa-20240630.htm (10-Q) — 3255KB
• ex-311q224.htm (EX-31.1) — 8KB
• ex-321q224.htm (EX-32.1) — 6KB
• ex-312q224.htm (EX-32.2) — 8KB
• 0001046025-24-000164.txt ( ) — 14404KB
• hfwa-20240630.xsd (EX-101.SCH) — 39KB
• hfwa-20240630_cal.xml (EX-101.CAL) — 92KB
• hfwa-20240630_def.xml (EX-101.DEF) — 335KB
• hfwa-20240630_lab.xml (EX-101.LAB) — 717KB
• hfwa-20240630_pre.xml (EX-101.PRE) — 547KB
• hfwa-20240630_htm.xml (XML) — 3514KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 6

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS 6 CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) AS OF JUNE 3 0 , 2024 AND DECEMBER 31, 2023 6 CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) FOR THE THREE AND SIX MONTHS ENDED JUN E 3 0 , 2024 AND 2023 7 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) FOR THE THREE AND SIX MONTHS ENDED JUNE 3 0 , 2024 AND 2023 8 CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) FOR THE THREE AND SIX MONTHS ENDED JU NE 3 0 , 2024 AND 2023 9 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 3 0 , 2024 AND 2023 11 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 13 NOTE 1. DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS 13 NOTE 2. INVESTMENT SECURITIES 14 NOTE 3. LOANS RECEIVABLE 17 NOTE 4. ALLOWANCE FOR CREDIT LOSSES ON LOANS 26 NOTE 5. GOODWILL AND OTHER INTANGIBLE ASSETS 29 NOTE 6. DERIVATIVE FINANCIAL INSTRUMENTS 30 NOTE 7. STOCKHOLDERS' EQUITY 30 NOTE 8. FAIR VALUE MEASUREMENTS 31 NOTE 9. INCOME TAXES 35 NOTE 10. COMMITMENTS AND CONTINGENCIES 35

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 36 OVERVIEW 36 RESULTS OF OPERATIONS 37 NET INCOME OVERVIEW 37 NET INTEREST INCOME AND MARGIN OVERVIEW 37 PROVISION FOR CREDIT LOSSES OVERVIEW 41 NONINTEREST INCOME OVERVIEW 42 NONINTEREST EXPENSE OVERVIEW 42 INCOME TAX EXPENSE OVERVIEW 44 FINANCIAL CONDITION OVERVIEW 44 INVESTMENT ACTIVITIES OVERVIEW 45 LOAN PORTFOLIO OVERVIEW 46 ALLOWANCE FOR CREDIT LOSSES ON LOANS OVERVIEW 47 DEPOSITS OVERVIEW 48 BORROWINGS OVERVIEW 48 STOCKHOLDERS' EQUITY OVERVIEW 49 REGULATORY REQUIREMENTS OVERVIEW 49 LIQUIDITY AND CAPITAL RESOURCES 50 CRITICAL ACCOUNTING ESTIMATES 51

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 51

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 52 2 Table of Contents

OTHER INFORMATION

PART II. OTHER INFORMATION 52

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 52

RISK FACTORS

ITEM 1A. RISK FACTORS 52

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 52

DEFAULTS UPON SENIOR SECURITIES

ITEM 3. DEFAULTS UPON SENIOR SECURITIES 53

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 53

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 53

EXHIBITS

ITEM 6. EXHIBITS 53

SIGNATURES

SIGNATURES 54 GLOSSARY OF ACRONYMS, ABBREVIATIONS, AND TERMS The acronyms, abbreviations, and terms listed below are used in various sections of this Form 10-Q. As used throughout this report, the terms "Heritage," "we," "our," "us" or the "Company" refer to Heritage Financial Corporation and its consolidated subsidiaries, unless the context otherwise requires. 2023 Annual Form 10-K Company's Annual Report on Form 10-K for the year ended December 31, 2023 ACL Allowance for Credit Losses AOCI Accumulated Other Comprehensive Income (loss), net ASU Accounting Standards Update Bank Heritage Bank BOLI Bank Owned Life Insurance BTFP Bank Term Funding Program CECL Current Expected Credit Loss CMO Collateralized Mortgage Obligations CRA Community Reinvestment Act CRE Commercial Real Estate Exchange Act Securities Exchange Act of 1934, as amended FASB Financial Accounting Standards Board FDIC Federal Deposit Insurance Corporation Federal Reserve Board of Governors of the Federal Reserve System FRB Federal Reserve Bank of San Francisco FHLB Federal Home Loan Bank of Des Moines GAAP U.S. Generally Accepted Accounting Principles LIBOR London Interbank Offering Rate LIHTC Low-Income Housing Tax Credit MBS Mortgage-Backed Securities SEC Securities and Exchange Commission SM Special Mention SS Substandard CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact, are based on certain assumptions and often include the words "believes," "expects," "anticipates," "estimates," "forecasts," "intends," "plans," "targets," "potentially," "probably," "projects," "outlook" or similar expressions or future or conditional verbs such as "may," "will," "should," "would" and "could." These statements relate to our financial condition, results of op

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS HERITAGE FINANCIAL CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Dollars in thousands, except share data) June 30, 2024 December 31, 2023 ASSETS Cash on hand and in banks $ 55,469 $ 55,851 Interest earning deposits 58,288 169,122 Cash and cash equivalents 113,757 224,973 Investment securities available for sale, at fair value, net (amortized cost of $ 1,022,211 and $ 1,227,787 , respectively) 931,248 1,134,353 Investment securities held to maturity, at amortized cost, net (fair value of $ 642,051 and $ 662,450 , respectively) 727,342 739,442 Total investment securities 1,658,590 1,873,795 Loans receivable 4,532,615 4,335,627 Allowance for credit losses on loans ( 51,219 ) ( 47,999 ) Loans receivable, net 4,481,396 4,287,628 Premises and equipment, net 73,218 74,899 Federal Home Loan Bank stock, at cost 22,303 4,186 Bank owned life insurance 126,420 125,655 Accrued interest receivable 19,855 19,518 Prepaid expenses and other assets 319,428 318,571 Other intangible assets, net 3,951 4,793 Goodwill 240,939 240,939 Total assets $ 7,059,857 $ 7,174,957 LIABILITIES AND STOCKHOLDERS' EQUITY Non-interest bearing deposits $ 1,599,367 $ 1,715,847 Interest bearing deposits 3,916,285 3,884,025 Total deposits 5,515,652 5,599,872 Borrowings 500,000 500,000 Junior subordinated debentures 21,912 21,765 Accrued expenses and other liabilities 171,786 200,059 Total liabilities 6,209,350 6,321,696 Commitments and contingencies (Note 11) Stockholders' equity: Preferred stock, no par value, 2,500,000 shares authorized; no shares issued and outstanding, respectively — — Common stock, no par value, 50,000,000 shares authorized; 34,496,197 and 34,906,233 shares issued and outstanding, respectively 541,294 549,748 Retained earnings 379,714 375,989 Accumulated other comprehensive loss, net ( 70,501 ) ( 72,476 ) Total stockholders' equity 850,507 853,261 Total liabi

View Full Filing

View this 10-Q filing on SEC EDGAR